SHFE aluminium weakly consolidates as alumina prices slightly collapse

On the macro front, the EU intensified sanctions, and the US imposed tariff pressures. In the short term, the global aluminium market will undergo structural adjustments due to policy impacts, requiring continuous attention to the dynamics of EU-US trade policies and changes in demand from major consumer markets. The previous day, the Shanghai municipal government held a meeting with foreign financial institutions to promote high-level financial opening-up, providing some confidence to the financial market.

On the fundamentals side, the pressure of aluminium supply resumption has re-emerged, with domestic aluminium operating capacity expected to rise slowly in February. The average spot price of alumina continued to weaken, driving aluminium costs to extend their downward trend. As of now, aluminium costs have fallen below RMB 17,300 per tonne, with industry profits exceeding RMB 3,300 per tonne. Inventory-wise, it remains in a post-holiday inventory buildup phase, with inventories expected to continue increasing rapidly this week. Demand side, the operating rate of leading aluminium processing enterprises rose 5.7 percentage points W-o-W to 56.8 per cent.